1st purchase of Multifamily Property

[Mike Alvarado]

Hi Guys, 1st time home buyer. What do you think of this deal?

List Price 249,000. 3 Unit Multifamily , one car garage

Expenses: Taxes 12,000, Sewer 1,000, Insurance 1000, Advertising 500, Hotwater 2000 = 16,500 Annual

Gross Income :Unit one Rent 1200, Unit two 1200, Unit three 800, garage 150 = 40, 200 Annual

9.5 Cap Rate I think

4.5 down using 1st time home buyer ( owner/ occupant) = 11,205

4.5 Interest

Closing cost 10, 0000

20, 0000 Rehab- Paint, kitchen and bath fixtures, tile work

I calculate NOI at 23,700 - 14, 388 (mortage) = 9, 312 cash flow annual

This is all pro forma. Would you do this? First two to three months is a wash on profits because we will rehabing. Plus I will be living in Unit three. The rents are pretty much on the money though.

Thanks, Mike